Warwick, R.I. – November 21, 2024 – The Rhode Island Association of Realtors recently released October sales statistics that show the median price of Rhode Island’s single-family home sales continued to climb year-over-year, rising 11.5% to $485,000. The number of closed transactions also saw an annual gain of 5.4%. Pending contracts rose seven percent, an indication that year-over-year sales activity will likely continue to grow through year-end.

The number of homes on the market rose 4.9% from the previous October, resulting in a 2.1-month supply of homes for sale at the current rate of sales, up slightly from 1.9 months last year. A five- to six-month supply is historically considered a balanced market.

Sales of multifamily homes also made significant gains. The median price of sales rose from $482,500 in October 2023 to $560,000 last month and closed sales increased by 17.2%. According to the National Association of Realtors’ 2024 Profile of Home Buyers and Sellers, 17% of home buyers purchased a multigenerational home from June 2023 to June 2024, the highest share ever recorded. Cost savings and the inability of young adults to access affordable housing on their own fueled the demand. The same report cited that first-time buyers are 38 years old, the oldest on record and have an income of $97,000, $26,000 more than just two years ago.

“We’re seeing homeowners who are tapping into their equity and 401K and competing for properties with first-time home buyers without those luxuries. Many are cash buyers who are downsizing or buying a second home. It’s tough for younger buyers to compete with that. Down payment assistance programs help slightly but lack of inventory, higher prices and interest rates are still the biggest pain points preventing our younger generations from starting to build equity through home ownership,” said Whitten.

With a median price of $355,000, $25,000 lower than last year, condominiums saw a 15.1% hike in sales. Though the number available for sale last month grew by 37.3% from the prior year, more inventory is needed.

“At the current rate of sales, all the condominiums available for sale in Rhode Island would be sold in just over two months if no new listings went on the market. The condo market is attractive to first-time buyers due to its lower price point, but more development is the key to help get younger generations into home ownership. The net worth of a homeowner is $415,000 compared to $10,000 for a renter. In the coming legislative session, RI Realtors will be focused on working closely with legislators who are willing to help remove barriers to building and enable the creation of more homes here in the Ocean State,” said Whitten.